"Far too expensive" for you. You have the problem. The market is there for people buying it at it's current pricepoint. That is what sets the price, not what you personally want to pay for it. What you are outraged about paying once, EVER for your character, many average people spend on 1-10 minute experiences. You can buy a starbucks drink.. or have a new emote for your character. You can get a pretty nice dinner.. or you can have a 4 person mount that you get to use until you stop your sub. Perspective is important as well
Except provably not. Many other (just as popular) games actually charge MORE for less. Considering FFXIV is mostly designed to have maybe 1 character per server (I'm not saying you can't have alts, just that you can experience pretty much everything the game has to offer on one character), the price per item applying to one character is very reasonable.
Because? Please explain beyond "I don't think it should cost more than.. "
Except it takes one person to conceptualize it, one person to model it, one person to texture it, several people to test and implement it, etc. etc.
Your concept of "I bet more people would buy it for a dollar.. " .. well yes.. but it would take 25 times as many people to make the same amount of money, not adjusting for transaction fees and so on. They don't just slap prices on stuff, they research what the market is (check other games acceptable prices) and figure out at what pricepoint they'll make the most money.
If enough people pay a price.. that is the going rate. That is how a luxury market works.
And again.. market research is done. A company of this size does not "hope".
Then there wouldn't be an incentive to use the cash shop and the whole purpose it was made for would be bunk. Therefore you wouldn't have most of the items in it since they were cash shop exclusives made by an entirely separate team created for that sole purpose.